| 1. |
Introduction |
| 1.1 |
The purpose of the bank reconciliation is to ensure that
only bona fide transactions are recorded in the University's
account with the bank. This is achieved by comparing the balance
recorded in the bank statement with that of the bank ledger
account in the Flinders Finance System.
The University's general ledger bank account is 5006. |
| 2. |
Policy
|
| 2.1 |
The University will undertake regular bank reconciliations
to control the risk of:
- Undetected fraud/error by University staff
- Undetected fraud/error by the bank
|
| 2.2 |
Bank Accounts held by Flinders University will be reconciled
to the general ledger within ten working days of the close of
every monthly accounting period. |
| 2.3 |
Invalid entries will be isolated and corrected either in the
University accounts if it is an error in the Flinders Finance
System or by the bank if the bank statement is incorrect. |
| 3. |
Procedures |
| 3.1 |
Bank statements will be received daily and transactions monitored
by the accounts officer responsible for cash flow in the Cashiers
and Accounts sections. |
| 3.2 |
Cashiers |
| 3.2.1 |
On a daily basis, the Cashier Supervisor, or nominee, will
compare the credits on the bank statement with the receipts
recorded in the Flinders Cashiering System. Credit amounts not
banked by the Cashier will be identified and receipted. |
| 3.2.2 |
Unidentified credits on the bank statement will be receipted
to the Revenue Suspense Account (105-0010-7244-000-0-01) and
moved to the correct revenue account as soon as identification
is made. |
| 3.2.3 |
Dishonoured cheques indicated as a debit on the bank statement
will be actioned by voiding the receipt in the Flinders Cashiering
System. |
| 3.2.4 |
The Cashiers Supervisor, or nominee, will prepare a monthly
reconciliation summary comparing total receipts on the bank
statement and total receipts recorded in the Finance System
General ledger for each accounting period. A signed and dated
copy of the reconciliation summary will be submitted to the
Director, Financial Services Division, or nominee, within five
working days of period close off. |
| 3.3 |
Accounts Payable |
| 3.3.1 |
On a daily basis, the Accounts Supervisor, or nominee, will
compare the debits on the bank statement with the credits in
the General Ledger bank account. Debit amounts on the bank statement
not relating to cheque numbers will be identified and entered
into the General Ledger by way of invoice entry or manual journal,
whichever is appropriate and efficient for the transaction type
in question. |
| 3.3.2 |
An electronic bank file will be received in NAB On-line on
a daily basis and transferred to the Flinders Finance System
by the Accounts Supervisor, or nominee. An Auto-Reconciliation
report will be run to produce a list of items passed through
the bank account that have not been identified in the Finance
System. The items will be identified and, where appropriate,
journalised by the Accounts Supervisor, or nominee, after liaising
with the NAB enquiry centre if necessary. |
| 3.3.3 |
A schedule of unpresented cheques will be produced at the
end of each month. |
| 3.3.4 |
Procedures for dealing with stale cheques have been defined
separately. |
| 3.3.5 |
The Accounts Supervisor, or nominee, will prepare a monthly
reconciliation summary comparing total debits on the bank statement
with total credit transactions in the Finance System General
ledger. A signed and dated copy of the reconciliation summary
will be submitted to the Director, Financial Services Division,
or nominee, within five working days of period close off. |
| 3.4 |
Independent Reconciliation |
| 3.4.1 |
Within ten working days at the end of each period close off,
an independent staff member, as nominated by the Director, Financial
Services Division, will complete a monthly bank reconciliation
statemnent incorporating the Cashiers and Accounts Payable reconciliations.
A signed and dated copy of the reconciliation, along with all
relevant supporting documentation, will be filed within the
Financial Administration area for a period of up to two years. |
